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Jun 22, 2015

TRUCKING SUITS * USA: Truck driver suit against Walmart and FedEx

* California - Walmart violated minimum wage law in failing to pay truckers for all tasks

-- A U.S. District Court in San Francisco has ruled Walmart violated California’s minimum wage law when it failed to pay its truck drivers for tasks ranging waiting in line to load or unload cargo to the time it takes to fuel or wash a truck... According to Judge Susan Illston, who issued her ruling in late May, truck drivers must be paid for all the time they were under Walmart’s control, even if those tasks were officially designated by the megastore as designated unpaid activities... Fresno attorney Butch Wagner told the Fresno Bee that the judge’s ruling could amount to $100 million to $150 million in back pay — which would include interest on that money and penalties. Wagner said he represents 720 truck drivers in his lawsuit. Wagner said Walmart pays its drivers by the mile and not by the hour... However, a Walmart spokesman said there is no proof that any company driver wasn’t paid the minimum wage for each hour worked, adding Walmart contends Wagner’s interpretation of the law is incorrect. The spokesman told the Bee that Walmart drivers earn between $80,000 and $100,000 per year and that more than 90 percent of its drivers have been with the company for more than a decade... 
San Francisco, CAL, USA - Trucking News - June 18, 2015


* California - The FedEx Ground reached an agreement to settle independent contractor litigation for $228 million

-- The class-action suit covers about 2,300 drivers who worked for the company between 2000 and 2007. Last August the Ninth Circuit Court of Appeals overturned a lower court and ruled that the drivers’ status as contractors failed the state’s “right-to-control” test... FedEx disagreed with the ruling, and said that the contractor model had been upheld more than 100 times, including by the U.S. Court of Appeals for the D.C. Circuit. And FedEx began using a new contractor model closely aligned with those decisions in 2011... “FedEx Ground faced a unique challenge in defending this case given the decision of the Ninth Circuit Court of Appeals last summer,” said Christine P. Richards, executive vice president and general counsel of FedEx Corp. “This settlement resolves claims dating back to 2000 that concern a model FedEx Ground no longer operates” ... The case is pending in the U.S. District Court for the Northern District of California, and the settlement is subject to court approval...

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